March 13, 2006
PUBLIC WORKS THE THIRD WAY (via Pepys):
The infrastructure deficit (Neal Peirce, 3/12/06, Seattle Times)
[A]s our attitudes on infrastructure shift from whether to how, a mega-question arises: Where will the multibillions of dollars for the repairs and new facilities come from?Schwarzenegger's bid has been for pure borrowing — general-obligation bonds that have to be paid off by tomorrow's taxpayers. But a state that adds too much new debt may find itself on thin ice.
But what law says that all the money for important new infrastructure needs to come from public treasuries anyway? Mark Pisano, veteran executive director of the Southern California Association of Governments (SCAG), points to the massive Alameda Corridor project, a freight-rail expressway from the ports of Long Beach and San Pedro to transcontinental rail yards in Los Angeles. The $2.4 billion financing package, which SCAG negotiated, depended heavily on $1.8 billion in revenue bonds to be paid back in user fees by shippers sending freight.
"I tell Gov. Schwarzenegger," says Pisano, "that the bonds he wants should be seen as seed money that gets matched by private money — jump starting the investment strategy."
A glance back through U.S. history, notes Pisano, shows that the nation grew across the continent — from building canals and railroads to constructing subways and metro-area urban rail lines — with relatively modest upfront government spending. Instead, private firms paid most of the cost, then collected revenue based on their investment.
The direct government spending that began in the New Deal, and reached its apogee in the interstate highway system with Washington paying 90 percent of the cost, can be seen as an aberration.
While using Third Way funding mechanisms is obviously the best idea, it's worth noting that the states are flush with money thanks to the Bush economy. It's also worth noting that the worst public works in America was the highway system, which was essentially just an unwanted military project. Posted by Orrin Judd at March 13, 2006 10:24 PM
I've read this sort of article back in the 1980's: "Oh where will we find the money to repair/replace our crumbling infrastructure?"
Probably the same place we found it when we built it in the first place. We just have to decide what we are going to budget for when.
Posted by: Mikey at March 14, 2006 8:29 AMThe worst public works program was the Public Education system.
Highways can be seen as an unnecessary boondoggle. Schools are actually working to undermine the intellectual and moral foundation of the nation while simultaneously bankrupting the nation.
All that state money you speak of is going straight into educrat pockets.
Posted by: Bruno at March 14, 2006 9:39 AMPublic Education has been a spectacular success in America and was a lynchpin of the Founders vision. Allowing unionization was a mistake.
Posted by: oj at March 14, 2006 10:00 AMFunny, I drove from Vidalia to Atlanta mostly over such boondoggles in three hours, surrounded by multi-wheelers hauling goods via point-to-point customized connections, rather than the "several sizes MUST FIT ALL" railway system.
Posted by: Ptah at March 14, 2006 2:52 PMP:
Funny? When the State decides against one technology and for another guess which wins?
Posted by: oj at March 14, 2006 4:58 PM